Abbott Reports Third-Quarter Revenue of $10.1 Billion, Driven by Double-Digit Organic Growth Across All Segments

Oct 20, 2023 00:02 CST Updated 00:02

Abbott

Diagnostic and pharmaceutical product manufacturers

Source: Siyu MedTech; Editor: Jacky

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On October 18, 2023, Abbott (NYSE: ABT) announced its financial results for the third quarter.

# Abbott Laboratories Q3 Earnings Report

Abbott's Total Revenue Reached $10.1 Billion in the Third QuarterCompared with last year, sales related to COVID-19 testing decreased by 2.6%.Organic sales growth of 13.8% in base business, reflecting double-digit growth across all four major businesses.

Third-Quarter GAAP Diluted Earnings Per Share of $0.82 and Adjusted Diluted Earnings Per Share of $1.14, Excluding Specified Items;
Abbott Narrows Full-Year 2023 EPS Guidance. Abbott expects full-year diluted earnings per share under GAAP to be between $3.14 and $3.18, with adjusted diluted earnings per share projected at $4.42 to $4.46, representing growth at the midpoint of the expected range.
Abbott forecasts low double-digit organic sales growth (excluding COVID-19 test-related sales) for the full year 2023.

▲ Each Business Line in the Third QuarterRevenue Situation

Abbott Chairman and CEO Robert B. Ford stated that the company's investments made during the pandemic will continue to drive broad growth in the core business, fulfill the financial commitments set at the beginning of the year, and the positive development momentum of the portfolio will propel the company to maintain growth into 2024.

# Overview of Q3 Business

Global nutrition sales increased 15.5% on a reported basis and 18.1% on an organic basis in the third quarter. In pediatric nutrition, global sales increased 20.9% on a reported basis and 24.9% on an organic basis. In the United States, sales grew by 41.8%, primarily driven by the ongoing recovery of market share for infant formula following the voluntary recall of certain products last year.

In the adult nutrition category, global reported sales increased 10.8%, with organic growth of 12.4%, driven by the strong performance of Abbott's market-leading, complete and balanced nutrition brand Ensure® worldwide.

As expected, the sales growth of the diagnostic business in the third quarter was negatively impacted by the year-over-year decline in sales related to COVID-19 testing. Global COVID-19 test sales in the third quarter of 2023 were $305 million, compared to $1.671 billion in the third quarter of the previous year. Excluding sales related to COVID-19 testing, global diagnostic sales increased 8.8% on a reported basis and 10.1% on an organic basis.

▲ Revenue of Each Business Line in the First Three Quarters of 2023

Acelis Connected Health was transferred from Rapid Diagnostics to the Heart Failure business on January 1, 2023. As a result, the $30 million in sales for the third quarter of 2022 and the $87 million in sales for the first nine months of 2022 were transferred from Rapid Diagnostics to the Heart Failure business.

In the third quarter, the sales of legacy pharmaceuticals increased by 3.2% as reported and grew organically by 11.1%. The key emerging markets include several emerging countries, which represent the most attractive long-term growth opportunities for Abbott's branded generics portfolio. Sales in these regions decreased by 1.4% as reported but grew organically by 8.8%, driven by growth across multiple regions and therapeutic areas, including cardiometabolic, women's health, and central nervous system/pain management.

▲ Revenue of Each Product Line in the Medical Device Business

Global Medical Device Sales Increase 16.6% Reported and 14.7% Organic in the Third Quarter. The sales growth was mainly driven by double-digit organic growth in the fields of diabetes care, electrophysiology, structural heart, and neuromodulation. Recently launched products and new indications, including Amplatzer® Amulet®, Navitor®, TriClip®, and AVEIR, contributed to the strong performance.

Among them, the international sales of electrophysiology business increased by more than 20% on both reported and organic bases, with sales in Europe growing over tenfold. In the diabetes care segment, FreeStyle Libre achieved sales of $1.4 billion, with reported sales growth of 30.5% and organic sales growth of 28.5%.

# Recent Company Updates

In July 2023, Abbott's AVEIR™ single-chamber leadless pacemaker received the CE mark for treating patients with abnormal or slow heart rhythms. Unlike traditional pacemakers, the leadless system is implanted directly into the patient’s heart through minimally invasive surgery, without the need for cardiac leads.

In September 2023, Abbott acquired Bigfoot Biomedical, a leader in the development of insulin management systems, further advancing Abbott's development of connected solutions to make diabetes management more personalized and precise.

In September 2023, Abbott expanded its existing collaboration with global biotechnology leader mAbxience Holdings SL to commercialize multiple biosimilar molecules, aiming to improve patient access to these therapies in emerging markets.

In September 2023, Abbott published an analysis showing a complementary relationship between the company's FreeStyle Libre® Continuous Glucose Monitoring System and GLP-1 drugs. The analysis also indicated that an increasing number of people are using these tools simultaneously to optimize diabetes management and improve overall health.

# About Abbott

Abbott (NYSE: ABT) is a global healthcare company founded in 1888, with its headquarters located in Chicago, USA. After a century of development, the company has now become a Fortune 500 enterprise with diversified pharmaceutical and nutritional products. In the "2022 Forbes Global 2000", Abbott ranked 134th.Review: Abbott Laboratories - A Century of Turbulence in the Medical Industry

Abbott operates in more than 160 countries and regions worldwide, with nearly 110,000 employees. Its products cover the fields of nutritional products, pharmaceuticals, medical devices, diagnostic instruments, and reagents.

In July 2023, Abbott released its second-quarter financial report, showing outstanding performance in its diabetes business with sales reaching $1.4 billion, a year-on-year increase of 19.4%. CEO Robert Ford stated that the FreeStyle Libre Continuous Glucose Monitor (CGM) was the main driver of growth, with the product continuously expanding its market coverage and user base worldwide.

Editor-in-Chief | Zhao Qing Reviewed by | Yi He Typeset by | Miya